Sole proprietorship

Definition

A business entity owned and managed by one individual. The owner, called a sole proprietor, does not pay separate income tax on the company, but reports all losses and profits on his/her individual tax return. Because the owner is indistinguishable from the business, he/she remains personally liable for all debts of the business.

See also

  • [[wex:Self-employed]]
  • [[wex:Limited liability]]